What is insurance, what are its types?

VA Mortgage Lenders

1. A VA mortgage lender is a person who helps veterans get mortgages while they are serving their country. These lenders specialize in helping veterans finance the purchase of homes. Even if a veteran does not qualify for a direct loan, a VA mortgage lender may still be able to help them work out a repayment plan.

 2. A VA mortgage lender does not make home loans; instead, he or she helps veterans find a different type of financial institution where they can apply for a home loan.

 3. A VA mortgage lender cannot guarantee approval for a home loan, nor does he or she have any control over whether or not the borrower receives approval. In some cases, the lender may be able to present the borrower's application to a third party lending agency, but this does not mean the borrower automatically gets a loan. It is ultimately up to the lending agency to grant or deny the request.

 4. Veterans should note that there are many types of lenders in existence. If a veteran wants to complete the funding portion of the transaction, he or she must choose a particular category of lender rather than a specific lender. The three basic categories of lenders are government-backed lenders (FHA, GSE), private banks, and online lenders/brokers.

 5. Government-backed lenders (Fannie Mae, Freddie Mac) offer low rates on home loans because they are backed by the federal government. Private banks offer competitive rates on home loans because borrowers do not need to prove that they meet certain criteria in order to obtain financing. Online lenders and brokers offer interest rates that range from 1% to 5%, depending on the credit score of the applicant.